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Employee Exemptions: Appeals Court Limits the Administrative Exemption

The federal Fair Labor Standards Act (FLSA) and California law exempt certain administrative employees from overtime; the requirements for the administrative exemption under California law are stricter than the FLSA. To qualify for this exemption in California, an employee must: 1) earn a salary equal to at least twice the state minimum wage; 2) perform […]

Retirement Plans: Major Changes to the 403(b) Rules; How to Prepare

Section 403(b) of the Internal Revenue Code is undergoing its most significant changes in decades. The IRS has issued final regulations for retirement plans governed by Section 403(b) and maintained by nonprofit and tax-exempt organizations and public schools for their employees’ benefit. The plans may be funded through annuity contracts issued by an insurance company, […]

Deferred Compensation Plans: Take Time Now to Ensure Compliance with Section 409A

Internal Revenue Code Section 409A regulates deferred compensation plans and other arrangements, including severance plans, annual bonus payments, long-term incentive arrangements, stay bonuses, and settlement agreements upon termination. Section 409A rules govern compensation that was deferred or became vested after Jan. 1, 2005. Because employers have faced many difficulties trying to comply with these rules, […]

Bulletin: Government revises Form I-9

The U.S. Citizenship and Immigration Services (USCIS) has released a new Form I-9, which you can access at www.uscis.gov. Five documents, which employees previously could have submitted for proof of identity and employment eligibility, were removed from List A because they lack sufficient features to help deter counterfeiting, tampering, and fraud. Employers can no longer accept […]

Bulletin: New state minimum wage goes into effect on Jan. 1, 2008

As of the first of the year, California’s minimum wage will be $8.00 per hour, up from the 2007 rate of $7.50. Keep in mind that this rate increase affects not only hourly, nonexempt workers but also salaried, white-collar exempt employees. As of January 1, the minimum monthly salary for these exempt employees will rise […]